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SITETOP > Information >2006 >Business Deployment in Europe by the Takuma Group

Business Deployment in Europe by the Takuma Group
Order Receipt of Plants in Succession in Germany and Denmark following Order Receipt in the U.K.

November 16,2006

Takuma Co., Ltd. announced the successive order receipts by the Takuma group, KAB Takuma GmbH (Berlin, Germany) of an RDF (Refuse-Derived Fuel) fired power plant and Bioener ApS (Copenhagen, Denmark) of a biomass power plant respectively, following the order receipt of an EfW plant for Cornwall Authority in the U.K. by Takuma HQ. This generated an order volume for the current term of approximately 36 billion JPY on a consolidated basis as of November in Europe.

[1] Business Strategies in Europe

As one of the prescriptions for a decrease in demand of domestic public works, our group has retained the corporate vision of an expansion of the overseas business and has been striving to implement infrastructure development to realize such a goal. Particularly in Europe, movement toward promoting EfW (Energy from Waste) plant construction as a countermeasure to offset greenhouse gas emissions based on the EU directive has appeared in concrete form in each country, so that a market on the scale of 10,000 to 12,000 tons/day throughout the year (equivalent to around 300 billion JPY) is estimated, simply for EfW alone. With this in mind, the Takuma group has been focusing on investing management resources into overseas operations, including launching overseas affiliated companies in Denmark and Germany, while reinforcing the lineup of the offshore business. As a result, last September, Takuma received an order for an EfW plant in the U.K. - as the first Japanese incinerator manufacturer in Europe, followd by the second order receipt in the U.K. in October this year.

The first order receipt of our overseas affiliates in Denmark and Germany respectively consolidated the operating base of the Takuma group as well as established a market position competitive enough with Europe-based plant manufacturers. We would like to develop the European business as one of the pillars of our group operations through promoting localization for further order receipts by the group.

We intend to win order receipts of 70 to 80 billion JPY on a consolidated basis in the European market within the three year period 2006 to 2008.

[2] General Description of the Project

(1) Order receipt details of KAB Takuma GmbH
1. Client: Vattenfall Europe Waste to Energy GmbH
2. Construction Site: Rostock, Germany (a city in northern Germany)
3. Amount of Contract: 68,700,000 EUR
4. Plant Overview
1) Type of Incinerator: Stoker type
2) Fuel: RDF (refuse-derived fuel generated at refuse separation plant situated next to the plant)
3) Treatment Capacity: Approx. 500 tons/day (170,000 tons a year)
4) Electricity Generation: 21 MW
5) District Heating Supply: 25 tons/h
5. Completion Schedule: November 2008
(2) Order receipt details of BIOENER ApS
1. Client: Vattenfall Denmark A/S
2. Construction Site: Odense, Denmark (a city of the Funen island)
3. Amount of Contract: 181,500,000 DKK
4. Type of Plant: Straw-fuelled biomass boiler power plant
5. Treatment Capacity: Approx. 600 tons/day (200,000 tons a year)
6. Electricity Generation: 33.1 MW
7. Completion Schedule: April 2009

[3] General Description of KAB Takuma GmbH

(1) Representative: Yutaka Takeuchi (Managing Executive Officer of Takuma Co., Ltd.)
(2) Shareholder: Shared 100% by Takuma Co., Ltd.
(3) Establishment: December 2004
(4) Location: MÖllendorffstraße 52, D-10367, Berlin, Germany
(5) Main Business Lines: Construction and sales of waste power plant Construction and sales of biomass power plant
(6) Number of Employees: Approx. 80 people

[4] General Description of Bioener ApS

(1) Representative: Osami Saito
(2) Shareholder: Shared 86% by Takuma Co., Ltd. and 14% by Itochu Corporation
(3) Establishment: December 2002
(4) Location: Ramsingsvej 30, DK-2500 Valby Copenhagen, Denmark
(5) Main Business Lines: Construction and sales of straw-fuelled biomass power plant
(6) Number of Employees: Approx. 25 people

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SITETOP > Information >2006 >Business Deployment in Europe by the Takuma Group

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